Source: Unsplash 

Piper Sandler analyst Michael Lavery downgraded Canopy Growth (CGC) to Neutral from Overweight with an unchanged price target of $27.

Canopy shares are up 215% since October, likely driven by improving sentiment around cannabis and potential for U.S. legalization following the elections, Lavery tells investors in a research note.

The company currently trades at 21 times estimated 2022 sales, says the analyst, who does not see further upside to valuation based on fundamentals. Federal legalization of marijuana in the U.S. could still be two years away, Lavery adds.